If you’re a backpacker planning a trip to Panama, it’s smart to get familiar with a few key details before you arrive. Panama uses the U.S. dollar as its main currency (often called the “balboa” locally, though paper bills are all U.S. dollars), which makes things easier for many international travelers. Credit cards are widely accepted in the cities, but small towns and hostels often prefer cash, so carrying smaller bills is recommended. For electricity, Panama uses 110V outlets with the same two flat prongs as in the U.S. and Canada, so if you’re coming from Europe or other regions, you’ll need an adapter. The country uses the metric system, so expect distances in kilometers and temperatures in Celsius. Panama is a democracy, with a presidential system of government and a stable political climate compared to many other Latin American countries.
The country has a population of about 4.5 million people, with nearly half living in or around Panama City. This mix of urban and rural life is part of what makes Panama interesting to travelers: you can go from skyscrapers to cloud forests or tropical islands within just a few hours. The Panama Canal is one of the nation’s biggest points of pride and economic engines, connecting the Pacific and Atlantic Oceans and making Panama one of the world’s most strategic shipping hubs. Backpackers often enjoy visiting the Miraflores Locks near the capital to watch massive cargo ships pass through, an unforgettable sight.
Panama also has some unique history. The country actually celebrates two independence days: one on November 3rd, marking independence from Colombia in 1903, and another on November 28th, celebrating independence from Spain in 1821. Both dates come with parades, music, and fireworks, especially in smaller towns. Beyond that, Panama is known for its cultural diversity, blending influences from Indigenous groups, Afro-Caribbean communities, and Spanish traditions. This mix is reflected in the food, music, and festivals you’ll encounter.
Now, here are some more interesting facts backpackers should know. (1) Panama is one of the safest countries in Central America for travelers. (2) The official language is Spanish, though English is common in tourist areas. (3) The country is home to seven Indigenous groups, each with its own culture and traditions. (4) You can swim in both the Pacific and Atlantic oceans in the same day. (5) The Darien Gap on the eastern border with Colombia is nearly impassable and not safe for travelers. (6) Bocas del Toro is famous for its Caribbean vibe and party hostels. (7) Boquete is the country’s coffee capital, popular with hikers. (8) The Lost and Found Hostel in the Fortuna Forest Reserve is legendary among backpackers. (9) San Blas (Guna Yala) Islands are run by the Indigenous Guna people, offering unique stays. (10) Casco Viejo in Panama City is a UNESCO World Heritage Site.
(11) The currency coins in Panama are called balboas, but they match the size and value of U.S. coins. (12) Public buses, known as “Diablos Rojos,” are colorful and cheap, though sometimes chaotic. (13) Panama hats actually come from Ecuador, but you’ll still find them sold here. (14) The highest point in the country is Volcán Barú, where you can sometimes see both oceans from the summit. (15) Panama has over 1,500 islands, from the Pearl Islands to Coiba. (16) It’s a top spot for birdwatching, with nearly 1,000 species recorded. (17) The country has no standing military; instead, it relies on police and international agreements for defense. (18) Tap water is generally safe to drink in Panama City but not in rural areas. (19) The climate is tropical, with a rainy season from May to November and a dry season from December to April. (20) Wi-Fi is common in cities but can be slow or absent in remote hostels.
For backpackers, knowing these details makes travel smoother and much more rewarding. From practical tips like power outlets and money to unique cultural quirks such as two independence days, Panama has plenty to surprise you. Whether you’re here to hike in the cloud forests, surf the Pacific waves, island-hop in the Caribbean, or just soak in the laid-back vibe, being prepared helps you enjoy the adventure even more. This mix of modern convenience, natural wonders, and cultural richness makes Panama one of the most fascinating destinations for budget-conscious travelers in Central America.